Second LNG terminal set to commence operations by November 24th

ENI has won a long-term LNG supply contract for a period of 15 years

ISLAMABAD: Preparations are complete for the opening of Pakistan’s 2nd Liquefied Natural Gas (LNG) terminal at Port Qasim as Pakistan LNG Terminals Limited (PLTL) has arranged the first shipment for arrival.

Due to a dispute between Fatima Group and Sui Southern Gas Company (SSGC), PLTL had been directed to make arrangements for diverting LNG cargo shipment from the first to second terminal, reported Express Tribune.

A senior government official said Qatargas had demanded higher price for diverting LNG cargo to second terminal and later Gunvor agreed to take its cargo to the second LNG terminal.

A short-term LNG supply contract had already been signed with Gunvor and was originally supposed to bring in its first shipment on November 28th. But ceding to PLTL’s request, Gunvor agreed to bring in the shipment four days earlier on November 24th.

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The second LNG terminal is set to be opened on November 24th and is expected to receive six LNG cargoes in its first month of operations, said the official.

Gunvor and Italian energy behemoth ENI will bring one cargo each a month and four others have been secured via spot purchases. The official added these cargoes had been arranged through spot purchases and tenders which followed set rules and Gunvor already had supply contracts with PSO.

ENI is said to have won a long-term LNG supply contract after having offered price discount and came up with an offer on two tenders floated by PLTL.

One tender was for a long-term agreement of fifteen years and the other for a short-term contract of five years. Over 15 companies had bidden for short-term tenders, whereas five offered bids for long-term supplies.

ENI and Gunvor were declared the winners for quoting the lowest prices. ENI quoted 12.29pc of crude oil price for long-term supplies and ENI 11.62pc of crude oil price for short-term supplies.

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